Zurich has taken another step forward in its efforts to simplify its business with a major portfolio transfer revealed today.
Catalina Holdings Ltd has signed a definitive agreement with Zurich Insurance that will see the majority of Zurich UK’s employers’ liability policies for 2006 and earlier underwriting years transferred over to Catalina. According to Neil Freshwater, CEO of Zurich Legacy Solutions, the move is part of a strategy to “manage risk and focus on ongoing operations.”
“For this substantial portfolio, it was important for us to find someone who would have the experience, expertise and capacity to maintain the management focus and service standards to our customers and claimants,” he said. “To that end, we are delighted to be working again with Catalina.”
The transaction is set to be carried out over two stages – firstly a reinsurance of relevant policies from Zurich to Catalina General Insurance Ltd; then an Irish Section 13 insurance business transfer of liabilities to Catalina London Ltd.
The transactions, which remain subject to regulatory approval, represent Catalina’s first move since it completed a US$700 million equity capital raise in October.
“This transaction with Zurich demonstrates our ability to execute on larger and complex transactions,” said Chris Fagan, chairman and chief executive of Catalina. “Our substantially increased financial firepower gives us scope to provide finality solutions to a range of much larger legacy market opportunities as the sector develops into a more accepted and useful part of the insurance market.
“Our track record and significant financial resources combined with our capital efficient, low cost operating platforms positions us to provide compelling value solutions to businesses looking to transfer legacy insurance portfolios. We are delighted to have done another deal with Zurich.”